• Business activities are generally classified in 3 categories.
  • Operational Activities (OA)
  • Investing Activities (IA)
  • Financing Activities (FA)
• Cash flow for the company = Net cash flow from OA + Net cash flow from IA + Net cash flow from FA
• CASH INCREASES due to activity = LIABILITY, CASH DECREASES due to activity = ASSET
• When cash is spent on an activity, that activity adds to the asset of the company therefore Asset addition leads to decrease in cash. (buying a property)
  • Conversely decrease of an asset leads to increase of cash.
• When cash is made from an activity, that activity adds to a liability of the company therefore Liability addition leads to increase in cash. (Taking a loan)
  • Conversely decrease of a liability leads to decrease of cash.
• Cash flow from OA
• Cash flow from IA
• Cash flow from FA

A company which has a positive cash flow from operating activities is always a sign of financial well being.

• For FY2014 119.19 crores (or 1191.92 million) were consumed.

• This closing cash & cash equivalents (2928.63 million) is reflected in balance sheet.